Some business expenses are recovered at 5% they are:
• Equipment Maintenance and Building Insurance
• Utility and postage couriers
• Computer software
• Office premise rents
• Marketing, printing and stationery, website services and internet advertising
Fully Recoverable Expenses
• Food and drinks: food and soft drinks consumed during the course of business meetings will be allowed for input VAT recovery.
• Petrol expenses: The VAT paid on petrol expenses for business use can be claimed fully. Apportionment of both personal and business purpose use is a complex task.
• Conveyance expenses to employees: In the employment period conveyance ‘To’ and ‘From’ the office will be given. Here, the VAT paid on conveyance expenses can be fully recovered.
• Expenses incurred on a visa to an employee: You will be allowed to recover the input VAT on Visa cost expenses.
• Medical insurance expenses: The health insurance coverage for the employees has 5% VAT on the cost of insurance. The VAT paid on medical insurance is fully allowed to be recovered fully.
• Audit Fees and Bank Charges: Such charges are fully recoverable under UAE VAT law.
• Legal consultation expenses: The business periodically receiving a legal consultation service from a law company is subject to VAT recovery.
